Running build 3.5.11 on MacOS 15.3 - simply loading the Natural Text Editing profile, or editing the hex codes as suggested by Muhammad Huzaifa wasn't sufficient.
I needed to remove the quotes around the hex codes in the key mapping that are introduced by default.
Before: "0x1b 0x7f"
After: 0x1b 0x7f
Edit: this issue has been raised in the iTerm2 Gitlab repo and a fix merged but presumably yet to be released: https://gitlab.com/gnachman/iterm2/-/issues/12031
